When it comes to a booming economy, prime online shopping, and a hopping real estate market, Seattle reigns supreme. Seattle has experienced almost DOUBLE the national average in increased price gains, September reflecting a 12.9% hike year over year. While national home prices were up by 0.4% from August, Seattle boasts an annual spike of 6.2%, excluding new construction homes.
Seattle is the king of the tech industry, resulting in higher-paying jobs and a booming economy. Due to high demand and limited inventory, Seattle’s median home price is $650K while the national median holds steady at just below $275K. Builders are unable to keep up with the demand for new homes as more and more millennials are relocating to the city due to strong job offers and upgraded careers.
Fifty percent of listed homes result in multiple offers, edging prices way above asking. It is not uncommon for a single property to receive ten to twelve offers.
In addition to Seattle, annual increases of 7+% were experienced by Boston, Dallas, Tampa, Las Vegas, Denver, Portland, San Francisco, and San Diego. Such metropolitan cities also boast strong economies and limited inventory.
Meanwhile, midwest and eastern states such as New York, Atlanta, Washington (DC), Miami, and Chicago had price gains below 6% annually.
Most home values nationwide have recovered from the recession due to rising prices. Such prices are expected to continue to spike and mortgage rates are settling at around 4%…for now. The number of house hunters is only increasing as the job market strengthens and millennials are rising to the challenge of new homeownership. With all of the demands on the market, new construction is finding it rather difficult to keep up.